Thailand repeals a 15% tax on cryptocurrency capital gains in response to popular outrage
After seeing significant market expansion, the Thai Revenue Department aimed to strengthen regulation of bitcoin trading.
Thailand has agreed to temporarily defer the application of its 15% cryptocurrency capital gains tax. Although the concept, which was introduced earlier this year, met with widespread criticism, it looks that some kind of cryptocurrency tax will still be enacted.
Thailand is apparently abandoning its 15% cryptocurrency tax proposal after considerable pushback from dealers in the country, according to The Financial Times. Tax authorities said that earnings gained via bitcoin trading or mining are taxed as capital gains.
The Thai Revenue Department aimed to strengthen control of cryptocurrency trading in 2021, after a significant expansion in the market’s size and value. However, industry leaders have voiced grave warnings that excessive taxes would impede the embryonic sector’s future growth.
Thailand’s Finance Ministry originally revealed its plan to tax the cryptocurrency market in January, but implementation was deemed challenging. For example, it was unclear whether the taxes would be assessed on annual reports or whether the government would require exchanges to deduct them at the source.
The Bank of Thailand, the Ministry of Finance, and the Securities and Exchange Commission stated last week that they would establish legislation governing certain digital assets that do not pose a threat to the financial system.
Governments are focusing their attention on cryptocurrency regulation on taxes, investor protection, and anti-money laundering. Due to DeFi and NFTs, the asset class has seen tremendous growth in recent years in terms of usage.
Numerous countries, most notably South Korea, are debating how to tax the cryptocurrency sector. South Korea has postponed its crypto tax proposal until 2023 due to widespread opposition.